Posting of Workers (Directive)
The EU Commission has submitted its proposal to amend the Posting of Workers Directive. The principle of "equal pay for equal work in the same place" will apply to both permanent employees and posted workers. In cep's view, this proposal is in breach of the freedom to provide services in the EU.
The new Directive provides that the employment law of the host country will apply after a maximum of 24 months, which aims to prevent the long-term avoidance of national provisions by the posting of workers. The duty to pay wages stipulated in the laws and universally applicable collective agreements of the host country, however, prevents effective, market-based wage control by way of competition from employees from other EU countries.